(ANI): The initial public offering of DCX Systems saw strong participation from investors as its issue was subscribed 69.79 times at the end of Day 3, i.e., Wednesday.
The three-day subscription window closed on Wednesday.
Data showed that the shares reserved for retail investors were subscribed 61.77 times at the close of Day 3.
Started in 2011, DCX Systems Ltd is among the leading Indian players in the manufacture of electronic sub-systems and cable harnesses in terms of manufacturing capability and revenue in Fiscal 2022 in the defence and aerospace sector.
The company's customers include domestic and international original equipment manufacturers, private companies and public sector undertakings in India across different sectors, ranging from defence and aerospace to space ventures and railways.
The company is bringing the public issue at a price band of ₹197-207 per share.
While recommending "subscribe" ratings for the issue, brokerage Hem Securities said the company is well-positioned to capitalize on industry tailwinds.
Pravesh Gour, Senior Technical Analyst at Swastika Investmart too recommended investors buy stocks for the longer term.
"The tailwinds in the sector emanating from government reforms will be visible in the long term, and thus we recommend this issue to long-term investors only," Gour said in a note.
The Bengaluru-headquartered firm is offering fresh shares worth ₹400 crore and is selling ₹100 crore shares through the offer-for-sale.
Allotment of shares will be done on November 7 and the listing of the stock on the exchanges is likely to take place on November 11, 2022.
For the record, the shares of some defence stocks had been rallying recently as the government had taken the decision to increase the sourcing of defence raw materials locally under the Atmanirbhar initiative.
There has been a lot of development and agreement between foreign and local companies in the field of drones, artificial intelligence and machine learning.